Stocks hit by profit-taking after recent gains

    CHINA’S stocks slipped yesterday, which analysts said appeared to reflect profit-taking after strong recent gains.

    The stock market was not significantly impacted by September inflation data showing the economy is still under deflationary pressure. China’s consumer price index (CPI) rose 1.6 percent in September from a year earlier, lower than expected, while producer prices extended their slide to a 43rd straight month. In the afternoon, stocks fell across the board. There was a net outflow in the northbound leg of the Shanghai-Hong Kong stock connect program, in contrast to inflows in previous sessions.

    AgBank sells dual currency bonds in London

    AGRICULTURAL Bank of China (AgBank), the country’s third-largest listed lender, completed its debut sale of US$1 billion dual currency bonds late Tuesday in London, the first “green bond” from a Chinese bank.

    Green bonds are issued to fund environment-friendly projects. This category of fixed-income instrument is growing fast as countries tackle climate change and pollution, a pressing issue in China. The 600 million yuan (US$94.53 million) two-year yuan-denominated tranch of the bond was priced at 4.15 percent.

    Huarong shortlists cornerstone investors for IPO

    CHINA Huarong Asset Management Co., the nation’s biggest bad-loan manager, has shortlisted more than 10 potential cornerstone investors for its US$2.8 billion initial public offering (IPO), people with knowledge of the matter said.

    The prospective buyers Huarong may invite to join the deal include China General Nuclear Power Corp., China Oceanwide Holdings Group, China Taiping Insurance Holdings Co. and Hong Kong brokerage Emperor Capital Group Ltd., the sources said.

    Engine-making units of AVIC set to be spun off

    AVIATION Industry Corporation of China (AVIC) is preparing to spin off three aircraft engine subsidiaries, a newspaper reported yesterday, part of a broad government effort to improve the competitiveness of its State-owned conglomerates.

    A new firm, controlled by the government, will become the parent of the three companies, Shanghai Securities News said. Sichuan Chengfa Aero-Science and Technology Co., AVIC Aero-Engine Controls Co. and AVIC Aviation Engine Corp. announced in separate stock exchange filings late Tuesday that AVIC may not be its controlling shareholder after a government-related restructuring.